What Defines a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the energy sector:
- TotalEnergies (NYSE:TTE) - P/E: 8.82
- Hoegh LNG Partners (NYSE:HMLP) - P/E: 5.98
- Callon Petroleum (NYSE:CPE) - P/E: 8.43
- Holly Energy Partners (NYSE:HEP) - P/E: 8.68
- China Petroleum (NYSE:SNP) - P/E: 4.13
This quarter, TotalEnergies experienced an increase in earnings per share, which was $1.76 in Q3 and is now $2.55. Hoegh LNG Partners has reported Q4 earnings per share at $0.37, which has decreased by 7.5% compared to Q3, which was 0.4. Its most recent dividend yield is at 0.91%, which has increased by 0.16% from 0.75% in the previous quarter.
This quarter, Callon Petroleum experienced a decrease in earnings per share, which was $2.93 in Q3 and is now $2.66. Holly Energy Partners has reported Q4 earnings per share at $0.43, which has decreased by 6.52% compared to Q3, which was 0.46. Most recently, the company reported a dividend yield of 7.88%, which has increased by 1.0% from last quarter's yield of 6.88%.
China Petroleum's earnings per share for Q3 sits at $2.64, whereas in Q2, they were at 2.63. Most recently, the company reported a dividend yield of 10.47%, which has increased by 3.82% from last quarter's yield of 6.65%.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
